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INCOME TAXES (Notes) | 12 Months Ended
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Jun. 30, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | The Company utilizes the liability method of accounting for income taxes. The liability method measures the expected income tax impact of future taxable income and deductions implicit in the consolidated balance sheets. The income tax provision in 2015 and 2014 consisted of the following:
Year Ended June 30, |  | 2015 |  | 2014
Current: |  |  |  |  |  |
Federal |  | $ | (100,126 | ) |  | $ | (1,863,204 | )
State |  | (167,282 | ) |  | 69,984 |
Deferred |  | 284,783 |  |  | (2,608,369 | )
Total income tax provision (benefit) |  | $ | 17,375 |  |  | $ | (4,401,589 | )
The 2015 and 2014 tax results in an effective rate different than the federal statutory rate because of the following:
Year Ended June 30, |  | 2015 |  | 2014
Federal income tax expense (benefit) at statutory rate |  | $ | 169,996 |  |  | $ | (3,382,307 | )
State income tax expense (benefit), net of federal income tax benefit |  | (21,442 | ) |  | (285,802 | )
Increase in valuation allowance |  | — |  |  | 148,000 |
Stock-based compensation |  | 53,596 |  |  | 58,187 |
Adjustments for unrecognized tax benefits |  | (175,000 | ) |  | (546,113 | )
Federal income tax credits |  | — |  |  | (187,349 | )
Other |  | (9,775 | ) |  | (206,205 | )
Total income tax provision (benefit) |  | $ | 17,375 |  |  | $ | (4,401,589 | )
Temporary differences which give rise to deferred income tax assets and liabilities at June 30, 2015 and June 30, 2014 include:
|  | 2015 |  | 2014
Deferred income tax assets: |  |  |  |  |  |
Deferred compensation |  | $ | 835,270 |  |  | $ | 858,434 |
Stock-based compensation |  | 889,325 |  |  | 714,350 |
Accrued expenses and reserves |  | 2,075,601 |  |  | 2,701,144 |
Federal and state net operating loss carryforwards |  | 463,237 |  |  | 371,744 |
Valuation allowance |  | (370,409 | ) |  | (370,409 | )
Equipment and leasehold improvements |  | 11,566 |  |  | — |
Other |  | 14,650 |  |  | 22,806 |
Total deferred income tax assets |  | 3,919,240 |  |  | 4,298,069 |
Deferred income tax liabilities: |  |  |  |  |  |
Equipment and leasehold improvements |  | — |  |  | (98,717 | )
Other |  | (4,671 | ) |  | — |
Net deferred income tax assets |  | $ | 3,914,569 |  |  | $ | 4,199,352 |
Deferred income tax assets as presented on the consolidated balance sheets:
|  | 2015 |  | 2014
Current deferred income tax assets |  | $ | 2,045,316 |  |  | $ | 2,576,023 |
Noncurrent deferred income tax assets |  | 1,869,253 |  |  | 1,623,329 |
Net deferred income tax assets |  | $ | 3,914,569 |  |  | $ | 4,199,352 |
Deferred income tax balances reflect the effects of temporary differences between the tax bases of assets and liabilities and their carrying amounts. These differences are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. The recognition of these deferred tax balances will be realized through normal recurring operations and, as such, the Company has recorded the full value of such expected benefits. The Company has no federal net operating loss carryforwards as of June 30, 2015. The Company has net operating loss carryforwards in the state of Wisconsin totaling $6,095,423 which expire in fiscal years 2026 through 2036. ASC Topic 740 "Income Taxes" prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. There were no additional significant matters determined to be unrecognized tax benefits taken or expected to be taken in a tax return that have been recorded on the Company’s consolidated financial statements for the year ended June 30, 2015. As part of the unauthorized transactions, there was no interest accrued by the Company as of June 30, 2015 and 2014, respectively.
|  | 2015 |  | 2014
Accrued interest at beginning of year |  | $ | — |  |  | $ | 49,150 |
Interest charges to expense |  | — |  |  | 24,575 |
Interest charges reversed |  | — |  |  | (73,725 | )
Accrued interest at end of year |  | $ | — |  |  | $ | — |
Additionally, ASC Topic 740 provides guidance on the recognition of interest and penalties related to income taxes. There were no penalties related to income taxes that have been accrued or recognized as of and for the years ended June 30, 2015 and 2014. The Company records interest related to unrecognized tax benefits in interest expense. For the year ended 2014, the Company decreased the interest it had accrued related to its tax reporting of the unauthorized transactions. The Company reversed the accrued interest related to the tax return that was filed for the year ended June 30, 2008, because the statute of limitations expired for this return. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2015 |  | 2014
Unrecognized tax benefits at beginning of year |  | $ | 175,000 |  |  | $ | 696,113 |
Gross increases - tax positions in prior years |  | — |  |  | 25,000 |
Reductions due to lapse in statute |  | — |  |  | (546,113 | )
Reductions based on settlements with taxing authorities |  | (175,000 | ) |  | — |
Unrecognized tax benefits at end of year |  | $ | — |  |  | $ | 175,000 |
In the fiscal year ended June 30, 2015, the Company settled its position with a state tax authority and reduced the unrecognized tax benefits to zero. The Company does not believe it has any unrecognized tax benefits as of June 30, 2015. Any changes to the Company's unrecognized tax benefits during the fiscal years ended June 30, 2015 and 2014 would impact the effective tax rate. The Company files income tax returns in the United States federal jurisdiction and in several state jurisdictions. The Company’s federal tax returns through tax year June 30, 2011 are settled and the income tax returns for tax years beginning July 1, 2011 are open. For states in which the Company files state income tax returns, the statute of limitations is generally open for tax years ended June 30, 2011 and forward. During the quarter ended December 31, 2014, the Company's federal return for the fiscal year ended June 30, 2013, was under examination. That examination closed during the same quarter with no adjustments to the return. The following are the changes in the valuation allowance:
Year Ended June 30, |  | Balance, beginning of year |  | Increase in valuation allowance |  | Release of valuation allowance |  | Balance, end of year
2015 |  | $ | (370,409 | ) |  | — |  |  | — |  |  | $ | (370,409 | )
2014 |  | $ | (222,409 | ) |  | (148,000 | ) |  | — |  |  | $ | (370,409 | )

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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